Israel Corporation

Regulatory Filings • Sep 29, 2021

Investment in AKVA Group ASA

September 29th, 2021

Translation and Forward-Looking Statements

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Israel Corp First Investment under updated Strategy - AKVA Group – Technology for Sustainable Biology

Leading aquaculture technology and service partner

Listed on Oslo stock exchange since 2006 with market cap of ~\$316m*

Global player with Deliveries in 65 countries over 40 years

Companies in 10 countries. 1,449 employees

Investment in AKVA Group (OB:AKVA)

• Israel Corp ("ILCO") announced today it has engaged in an agreement to purchase shares of AKVA Group ASA (hereinafter: "AKVA"), a public company whose shares are traded on the Oslo Stock Exchange, Norway (ticker: AKVA)
• AKVA engages in the provision of solutions and services in the field of aquaculture, including solutions using land-based aquaculture technology.
• ILCO will invest ~\$65m*, of which ~NOK 322m (~\$37m*) be invested in AKVA against the issuance of shares, and up to ~NOK 241m (~\$28m*) shall be paid to purchase shares of AKVA from the current shareholders of AKVA ("Secondary")**.
• Following the closing of the transaction, ILCO is expected to hold at least 15% of the shares in AKVA.

Investment in AKVA Group (OB:AKVA) (cont')

• ILCO will have the right to appoint one board member and be a part of an advisory committee to AKVA's CEO and management, on strategy, technology and innovation.
• ILCO and AKVA shall strive to set up an investment vehicle that will invest into land-based aquaculture projects that will use AKVA's technology, and that will consider ESG factors.
• ILCO & AKVA, will allocate \$10m each, to be invested through the investment vehicle or to be invested directly into land-based projects.
• ILCO & AKVA have engaged in an agreement to provide, under certain conditions, financing (convertible loan, in a non-material amount), to AquaCon AS ("AC"), a company that is setting up a salmon land-based facility in the US. In addition, ILCO and AKVA will receive, subject to granting the convertible loan, a right to participate in an additional investment in AC, \$7.5 million each, during an additional future round of financing in terms and conditions as were agreed by the parties.

Fit to ILCO Strategy

Main investment sector focus will be Food (Tech), Agri (Tech), Healthcare and Industry 4.0

Investing in sectors that ride on the global megatrends, and with Positive ESG profile

Our global presence and capabilities position ILCO to create significant value in both European and Israeli investments

▪ Investing in mature companies

Investing in a strong platform for future growth

Aquaculture Atlantic Salmon Industry

Atlantic Salmon Conventional Life Cycle Net Pens

Most of the salmon supply today is grown in open sea cages, the growth cycle is 12-24 months depending on the target weight. The open sea cages are license based, which are becoming very challenging to obtain. This development may impact future supply growth from sea cages

The North American and Asian markets have historically been dependent on (and limited by) import from Norway and Chile

2019: Main salmon intercontinental trade flows, volume in th. tons whole fish equivalent (WFE)

• Source: AKVA Capital Markets Day, November 2020

Consumers willing to pay a premium for salmon vs. other proteins

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• Source: AKVA Capital Markets Day, November 2020, Salmon: Norwegian salmon export price; Beef: Australian and New Zealand 85% lean fores, CIF US import; Chicken: Whole bird spot price, whole iced, Georgia docks; Pork: 51-52% lean hogs, US price Source: SINTEF (Carbon footprint), IMF (Price benchmark)

Underlying demand growth implies 1–2Mt volume increase by 2030

Traditional growth and new emerging technologies have the potential to cover underlying

demand
• Source: AKVA Capital Markets Day, November 2020

AKVA Group

AKVA Group – Facts and Figures

~\$360m*

Revenue LTM 30.6.21

40 Years of aquaculture experience

~\$37m*

EBITDA adj. LTM 30.6.21

~10% EBITDA adj. margin LTM 30.6.21

For additional information please visit AKVA Group web site at www.akvagroup.com

From Single component to complete solutions

Leading Technology provider with strong R&D

A leading service provider to farmers Substantial experience in delivering smolt salmon land based facilities

Signed Contract for Land based Salmon plant in China

A leading provider of

digital solutions to the aquaculture industry

Digital solutions to support high productivity in Sustainable salmon production

• Source: AKVA financial statements; convenience translation from NOK at NOK/USD of 8.6505 , as of 28.9.21

Management

Management team led by the CEO, Knut Nesee, are equipped with extensive experience, with strong execution capabilities and mindset

Knut Nesse, CEO Start: Nov-19

Experience: 6y CEO of Nutreco, 6y CEO of Skretting

Education: MBA

Ronny Meinkøhn, CFO Start: Aug-20

Experience: 6y CFO of Apply

Education: MSc in finance

Erlend Sødal, COO Sea Based

Start: May-20

Experience: 8y managing director of skretting Norway

Education: MSC in industrial economics, MBA of Technology

Johan Fredrik Gjesdal, COO Land Based

Start: Oct-20

Experience: 3y VP strategy and BD of AKVA, before consulting in Aker Solutions

Education: MSc in Industrial economics and Technology management

Asle Kjetil Bratteli, CDO

Start: Jan-21

Experience: Regional VP at Gartner group, 10y in Nutreco and Skretting in Digital related roles

Education: Economics

AKVA Group – Advantageous position in Land Based

Smolt/post smolt (200-1,000 gram)

• Substantial experience providing smolt facilities and ancillary equipment to the leading salmon farmers
• A new modus operandi is developing in the market, of increasing the smolt facilities volume and smolt size ; AKVA, with its solid pipeline, is well positioned to benefit

Grow out

(3-5.5 kg)

• Based on AKVA's experience in smolt facilities and their RAS design, AKVA is well positioned to be a leading player in the grow out space
• AKVA has a signed contract with Nordic Aqua Partners (OB:NOAP) to provide technology for a 4kt (1st phase) salmon land based project in Ningbo, China.
• AKVA has a solid pipeline of projects in various stages

CEO Perspective

Knut Nesse, CEO AKVA comments: "We are very pleased to welcome Israel Corp. as a long-term, strategic shareholder in AKVA group. We believe that Israel Corp. global business experience and technology background will contribute to our goal to build a world-leading offering of technical & digital solutions within sea and land-based aquaculture. This transaction will enable AKVA to accelerate the execution of our current strategy, to significantly step up our innovation agenda, and to transform our land based strategy".

Yoav Doppelt, CEO Israel Corp. comments: "We look forward to working with AKVA group to accelerate growth in sustainable food production and further develop AKVA's technological leadership within the aquaculture industry. Our discussions with AKVA convinced us that AKVA is a leading global player in the aquaculture industry, and best positioned to capture the global land base opportunity".

thank you

Investor Relations Contact Idan Hizki Senior Director, Business Development & Investor Relations Tel: +972 3 684 4500 idanh@israelcorp.com

www.israelcorp.com